Is Apple out of ideas?

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At this point they might not need much

Apples' greatest growth prospect lies in
computers, due to its smaller market
share. There's a lot of room for growth
there.

Within that market, Apple has been able
to cement a reputation, especially with
consumers, of very good reliability and
relative ease of use. That reputation is
enhanced by Mac users. Mac users have
always been Apple's best salesmen. If
you ask most Mac users about their
experience the response is usually
highly positive. As the number of users
increases, the number of "salesmen"
increases. Endorsements from actual
users are the single most effective
marketing tool because potential buyers
view those endorsements as untainted
by possible financial gain.

The growth of Corolla, Camry, Civic and
Accord would be a good corollary.
Consumers bought the product, found
the product very reliable and gave
positive recommendations to others.
That success did not come overnight.
Corolla was introduced in the U.S. in the
later 1960s. Civic came in the 70s.

Apple also has demographics on its
side. The computers are very popular
with younger people, especially college
kids. If you break down that
demographic a bit more, you'll find that
female college kids favor Macs more.
Today, the majority of U.S. college
students are female. As they graduate
they are more likely to buy more
computers than high school grads. As
long as Apple can retain the well
established loyalty of Mac users, Apple
is positioned for good consumer
growth.

I assume that Apple will work to
enhance products like the iPhone and
iPod so as to enhance their value and
encourage upgrades, so I am not
discounting those as revenue enhancers.
However, the computers seem to be
positioned for the best growth right
now.

Posted by: j.m.galvin   Posted on: 10/02/08 You are currently: a Guest | Members login | Terms of Use

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